Thinking of Selling in California? Here’s What You Need
Do you have a business idea and a starter platform that sells access in California? Remember, whether it is an online shop, physical shop, or selling at the local market, you need a seller’s permit. It is a document that legally allows you to collect sales tax and remit it to the sales tax authority of your country. Not having this document can lead to severe fines and penalties, hence putting your business at risk.
Providing business owners with everything on a silver plate in the case of applying for this permit is not a walk in the park. But worry not; let’s take it step by step on how you can apply for a seller’s permit in California with no wiggle of doubt.
What Is a Seller’s Permit, and Who Needs One?
This authorizes people running businesses to collect sales tax on certain goods and services. Selling or leasing tangible property in California makes one eligible to avail of the permit, as it is a requirement in the California Department of Tax and Fee Administration.
All individuals, corporations, and LLCs are required to obtain a seller’s permit if they:
- Sell taxable goods
- Operate a store online or in-person in the state of California
- Sell at temporary stores such as flea markets or pop-ups
If you provide services without selling physical items, you likely do not need a seller’s permit. However, it’s best to reach out to the CDTFA if you’re unsure to prevent unnecessary complications.
Steps to Apply for a Seller’s Permit
The application process is simple. To get started, follow these steps:
1. Compile Your Business Information
Gather the following information:
- business name and structure (sole proprietorship, LLC, corporation, etc.)
- Employer Identification Number (EIN) or, if you are a sole proprietor, Social Security Number (SSN)
- A business address and contact number
- A description of the product or services offered
- Sales expectations for the business
2. Apply Online or Visit In-Person
CTDFA’s website offers the fastest application process. You can set up an account, complete the application digitally, and submit it online. Alternatively, applications can also be submitted in person at local CDTFA offices.
3. Get Your Permit
Once the submission is done, you will typically receive your permit after 7 to 10 business days. In some situations, CDTFA might ask for more information, and this could delay the process.
Common Mistakes to Avoid
A lot of new entrepreneurs can experience a slowdown during the verification and application process. The most common mistakes include the following:
- Not estimating the sales accurately
- Applying at the last minute and hence delaying the entire process
- Leaving the permit out of the display (mandatory for business)
- Entering wrong or vague details of the business in the application.
What Happens After You Get Your Seller’s Permit?
Having a permit means that you are liable to collect sales tax from customers and submit sales tax returns at regulated intervals. You are advised to follow legal guidelines because messing with the taximeter is uniquely pleasing, so it’s best to stay organized and maintain order in your records.
Ready to Apply? Don’t Wait!
Obtaining your seller’s permit while doing business in California is highly significant. If you are eligible to start selling, ensure that you complete the application process without delay. If you require assistance, consider using reliable online services to help you complete it with ease.
Avoid common pitfalls from the very beginning by following these steps. Have a seamless and successful business model right from the start. Wishing you the best!